A coal plant costs Php103,522,560, will last 18 years, and cost PhP3,322,737 to operate annually. A fuel-based plant costs Php43,136,919, will last 11 years, and cost PhP4,347,623 to operate annually. Between these alternatives, which is the better investment using ROR method? Interest is 6% and zero salvage value for both options

A coal plant costs Php103,522,560, will last 18 years, and cost PhP3,322,737 to operate annually. A fuel-based plant costs Php43,136,919, will last 11 years, and cost PhP4,347,623 to operate annually. Between these alternatives, which is the better investment using ROR method? Interest is 6% and zero salvage value for both options

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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